While this may seem on the surface to be a hindrance, many cryptocurrency users have nonetheless flocked to Poloniex for the variety of currencies that it includes in its list of offerings.

Poloniex has experienced numerous redesigns and expansions since its initial launch. The service now also provides technical analysis and user support in addition to its original trade functions, as well as an expanded range of trading features.

The higher fee that the taker pays is usually offset by the better prices this tighter spread provides. In other words, the higher a user's trading volume over the previous day period is, the lower the fees that user experiences.

The maker-taker model, in use in a variety of types of exchanges throughout the financial world, aims to incentivize trades within a particular market.

It does this by offering market makers an incentive to post orders, thereby facilitating trades. On the other hand, these models often are punitive for the customer on the opposite side of the equation.

In the case of Poloniex, the added benefit of the increased liquidity and more optimal market spread is designed to balance against the higher fee which is charged to the taker.

As with most cryptocurrency exchanges, Poloniex has made it a priority to guarantee that users experience safety and security while transacting.

As such, Poloniex ensures that "the vast majority of customer deposits are stored offline in air-gapped cold storage. Besides that, the exchange maintains vigilant monitoring and auditing systems which work to protect user assets around the clock.

Even with these security measures in place, though, there have been user concerns regarding Poloniex's security and solvency. In the summer of , for instance, a rumor circulated among users that Poloniex was experiencing insolvency.

Other issues, including frozen accounts and disabled withdrawals, also fueled the insolvency rumors.

The slowdown in customer support and reduced functionality suggested to some that the increased demand on Poloniex from a growing user base might have overwhelmed the system.

Since early in , when those issues were first reported, Poloniex has continued to be plagued by user concern regarding transaction processing time, transaction completion, and more.

On the other hand, Poloniex has so far not experienced major security breaches, which remain a major concern among cryptocurrency investors and for digital currency exchanges more broadly.

The slowdown has also impacted the account creation process, and Poloniex acknowledges that it may take weeks for a user to successfully create a new account.

Some took this to mean that Poloniex was prepared to not distribute bitcoin cash to those Poloniex users who held bitcoin at the time of the hard fork.

Accordingly, a healthy dose of skepticism remains. Are There 2 Crypto-Bubbles? As recently as January of , Poloniex users reportedly experienced isses related to customer account balances in the exchange platform.

Perturbed users suggested that the exchange was not properly crediting user account balances when those users canceled orders through Poloniex.

In response, the Poloniex team addressed the issue via Twitter, announcing that it would investigate any complaints related to canceled orders not being refunded.

In May , law firm Berns Weiss LLP announces that is investigating potential claims on behalf of cryptocurrency exchange users who may have incurred losses due to recent DDoS attacks.

Poloniex experienced severe distributed denial of service DDoS attacks on May 8 that led to many leveraged positions being liquidated. That was a sell order of enough volume to push down the Ethereum price and therefore liquidate positions that had been placed on margin calls.

Many users of the exchanges are under the impression that they are victims of market manipulation and possibly even insider trading.

In October , Security researchers discovered two fraudulent apps on the Google Play store purportedly tied to the Poloniex cryptocurrency exchange.

Apart from harvesting Poloniex login credentials, the fake apps also try to trick victims into making their Gmail accounts accessible to the attackers.

In December , Poloniex announced that all traders who use the platform must verify their identity. Previously Poloniex began implementing an identity verification process for all its new registrants.

On February 2, , technology blog Modern Consensus reported that Circle , a multi-currency money-sending app, would be acquiring Poloniex.

Modern Consensus cited two unnamed sources that had information about the potential deal. On February 26, , cryptocurrency startup Circle acquired Poloniex.

Neither of the companies disclosed the value of the deal. On May 27, , Poloniex froze all unverified accounts without announcing a deadline.

In contrary to their previous statements guaranteeing traders would be able to withdraw their funds, legacy account holders are locked out of their account.

Poloniex has released a further statement on mandatory identity verification, refusing to address withdrawals for unverified users.

In a September report by the New York Attorney General office, Poloniex was one of ten virtual currency exchanges - out fourteen asked to participate - to respond to the request for information aimed at creating greater transparency regarding security, anti-hacking measures and business practices.

The report indicated that this latter disclosure was helpful for transparency and customer awareness. From Wikipedia, the free encyclopedia.

This article has multiple issues. Please help improve it or discuss these issues on the talk page.